Smart Connected Vehicles: Driving to the Bottom Line! · Cisco Digital Business & Application...
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June 23, 2015 Smart Connected Vehicles: Driving to the Bottom Line! Andreas Mai, Director Smart Connected Vehicles
Transcript of Smart Connected Vehicles: Driving to the Bottom Line! · Cisco Digital Business & Application...
June 23, 2015
Smart Connected Vehicles: Driving to the Bottom Line! Andreas Mai, Director Smart Connected Vehicles
Cisco Confidential 2 © 2013-2014 Cisco and/or its affiliates. All rights reserved.
The Panelists Chuck Link
General Manager Connected Services
Director Smart Connected Vehicles
Chief Technology Officer (Retired)
Frank Weith Andreas Mai
Cisco Confidential 3 © 2013-2014 Cisco and/or its affiliates. All rights reserved. Sources: June 2014, “Telco Revenue Opportunities in Connected Cars” Netcracker 360 & Cisco Internal
Connected Car is the biggest M2M / IoT Market for SPs … and A Key Hub in the Wider Internet of Things
Health
Home Transit Cloud
ITS Grid LBS
Cisco Confidential 4 © 2013-2014 Cisco and/or its affiliates. All rights reserved.
Internet of Cars: $700 Billion Benefits per Year
250
210
160
80
Worldwide Benefits
$700 Billion
Note: Core Regions NA, EU, AP, Excl. 22% RoW, @ $1,400/ vehicle & 67% penetration of vehicle population
Society § Safety: V2V to address 80% of crashes § Congestion: V2I to increase road and
intersection throughput, CO2 reduction § Lower traffic/road/toll operation costs
Vehicle User § Lower operation & insurance cost § Less time stuck in traffic, more productivity § Lower data cost
Internet of Cars Service Providers § Cyber security: Cloud supported protection § B2B2C service platform: to integrate E-2-E
experiences, e.g., navi + traffic + parking +LBS § Infotainment & Productivity Apps
Auto OEM/OES § Remote diagnostics: to reduce warranty cost
(>50% electronics) § Secure OTA-Update: of >100 electronic control
units to reduce recall cost § Connected CRM/ VRM: to increase customer
stickiness and service revenue Source: Cisco IBSG Automotive and Economics Practices, 2011
Worldwide Benefits from Connecting Road Vehicles Per Year [$ Billion]
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New Business Models: Connecting the Mobility Value Chain
Source: Cisco Smart Connected Vehicle, 2014
Core
From Building Cars … … to Selling Travel Time Well Spent
Value Connectivity Roads ITS Services Energy Vehicle LBS UBI Modes Cost
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Applications
Friends & Family
Likes & Hobbies
Content Consumed
Browsing
Search
Public Internet
Healthcare
Banking Retail
Business Applications Company-Specific Analytics
Oil & Gas Automotive
Public Sector Enterprise Internet
Secure Network Data Exchange
IoE: Smart Network Connects, Detects, Collects, Protects, and Acts
Source: Cisco Systems, 2013
Vehicles
Meters
Medical Devices
Traffic Lights
City Cameras
Consumer Devices
Internet of Things
Network of Things
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Scalable Modular Platform to Capture Value of IoE
Factory Utility Vehicle Retail Health
Cisco Digital Business & Application Enablement
Cisco ONE Network Automation Cloud Orchestration Policy/Intent (ACI)
Business Continuity & Optimization
Process Automation
Business Insights Collaboration
Service Exchange
Business Integration
API
Service Grid
Contact Center
Data Virtualization
Fog
E-2-E Security
Management
Cisco + Partner Solutions
+ ConMan Data Security Cisco Client
Dealer Home Insurance Transport
City
Cisco Infra Data Center WAN Access Mobility
Internet of Things Cloud Connect
Interactive Experience
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Security Operations Center
Secure Service Exchange Platform
Secure IoT Enterprise
Security Cloud
Five Major Layers of End-2-End IoE Security
Value
Advanced Vehicle Security
Security
Update
Report
Company è Industry è X-Industry ?
Source: Cisco Systems, 2015
Cisco Confidential 9 © 2013-2014 Cisco and/or its affiliates. All rights reserved.
Global Mobile Data Traffic Drivers
More Mobile Connections
More Mobile Users
Faster Mobile Speeds
More Mobile Data per Month
Source: Cisco VNI Global Mobile Data Traffic Forecast, 2014–2019
192 Exabytes = 192 x 1018 Bytes = 65 Trillion images = 6 Trillion video clips
7.4 Billion
11.5 Billion
1.7 Mbps
4.0 Mbps
2014 2019 4.3 Billion
5.2 Billion
By 2019:
0.6 GB
4.4 GB
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Cable / DSL Ethernet / LAN “Switching”
3G/LTE WLAN
Home Security &
Automation
Media DSRC Hotspot City Mesh
HOME OFFICE ROAD
Off-Loading Data and Switching Is Key to Improve Experience and Contain Cost
Source: Cisco IBSG Automotive 2011
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Trends Driving The “Telematics End-Game” for SPs
OTT
Automaker
MSP 1
Apps+Content
MSP 2 MSP n
B2B2C PF
Plan1 Plan 2 Plan n
Best Cost/ Quality Switching
New Device on Existing Plan
Global/ Soft SIM
Identity Management
Split Billing
3G/ LTE
WiFi/ DSRC
Source: Cisco Systems, 2015
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Strategic Control Point: B2B2C Platform That Delivers Better Connected Vehicle Experiences
GM, Daimler Visteon, Bosch Sub-Systems
Partmakers Automakers AT&T, Onstar
Voice/ Data SPs
Applications
Services
Experiences
Applications
Services
Experiences
Applications
Services
Experiences
Apple
…
Repairpal
Zubie
…
Connected Vehicle B2B2C Platform
Cisco Confidential 13 © 2013-2014 Cisco and/or its affiliates. All rights reserved.
Better Control or Share Value Creation and Market Access?
Source: Cisco Smart Connected Vehicle, 2014
Price Value
…
From Building Cars to Selling Travel Time Well Spent Price
Technology Cost Customer Data
Value Creation Market Access
Need New Innovation & Business Models
Control
Share
Automakers SPs Insurers “The Valley”
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§ Top technology challenges for automakers and service providers?
§ Customer ask: Automatic switching to best quality / best cost network?
§ Is 4G enough to manage the “Internet of Cars” data avalanche?
§ Who “naturally owns” what piece of the “Internet of Cars” pie?
§ Who will win the race for the future personal mobility business?
Q&A: Service Provider Strategies to Compete in the hypercompetitive Internet of Cars Market
Cisco Confidential 15 © 2013-2014 Cisco and/or its affiliates. All rights reserved.
1. Will 4G be sufficient to transport ALL data to and from connected vehicles? § Yes § No
2. Who will win the race for the future personal mobility business: § Automakers § Service Providers § “The Valley”
Polls: Your Opinion Counts…
Thank you.
